Introduction of LLP in India:

The idea of Limited Liability Partnership has been brought into by method of upholding Limited Liability Act, 2008. The thought is to get the adaptability of the Partnership and Benefits of Corporate Body like Company to unite under one structure of association.

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The Comparision:-

	Limited Liability Partnership	Partnership Firm
Separate legal entity	LLP is a separate legal entity and can hold assets in its name.	The status of Partnership Firm does not have separate identity from its Partners.
Liability of Partners	The liability of Partners is limited to the extent of their contribution in LLP. Further, one Partner is not affected or not held liable for the actions of another Partner.	The liability of Partners is not limited and can extend to personal assets of Partners. The action of active Partner can hold another liable.
Number of Partners	Minimum 2 Designated Partners are required to from LLP. However, there is no ceiling limit on number of Partners.	The ceiling limit on number of Partners is 50. Partnership Firm having more than 50 Partners are declared as illegal association.
Uninterrupted Existence	The existence of LLP is not affected by change in the Partners of LLP.	The Partnership Firm dissolves due to removal or death of Partner subject to clauses of Partnership Deed.
Registration	Registration of LLP is mandatory and it is registered with Registrar of Companies on online portal of MCA. Hence, it gets benefit of Centralised Registration.	Partnership Firm can be registered as well as unregistered. The registration, if required shall be done with local Registrar of Firm. No online portal is available for its registration.
Statutory Compliances	Statutory Compliances in case of LLP are in addition to compliance under Income Tax Act, as the LLP Act mandates the same. These compliances ensure transparency of operations and financials of the entity.	There are no additional compliances prescribed except laid down under Income Tax Act.
Data availability	The central Registration with MCA allows availability of Documents to Public except the Agreement between Partners. Also, one can see the last Balance sheet filed with MCA in the Master data of the entity which creates high creditability and reliability among the other parties to the LLP	Any of the information or the data of the Partnership are not disclosed on public platform.
Higher Creditability	Due to higher compliances and transparency in operation, the credibility of LLP is higher and thus it eases the fund raising from financial institutions.	Compared to partnership firms, other body corporates are having higher credibility and hence are less preferable.
Uniqueness of Name	The name of the LLP is unique and not identical or similar to any other company or LLP, which helps to establish distinctive image.	There is no restriction for using the name in case of Partnership, furthermore it does not necessarily help to establish distinct image of Partnership.
Taxation Aspect:	LLP is considered as Partnership Firm for the purpose of Taxation Aspects. The taxation aspects are governed by Income Tax Act, 1961.
Agreement Signed:	Operations of both the LLP and Partnership firm are administered by Agreement signed between the Partners of the entity.

Based on above correlation above it is clear why LLP is choose over the Partnership Firm as it profits the advantages of the Partnerships with higher inclination.

Nature of Simplicity of exchange is flawless in the LLP and its recognized situation in Corporate World places a LLP in undeniably more worthwhile situation than a Partnership. Not really everybody ought to settle on a LLP however the person who are searching for long haul development and are eager to bounce into corporate world without confronting the high limitation caused if there should be an occurrence of Companies, the individual may lean toward LLP thinking about its favorable circumstances and detriments.

Benefits of choosing LLP over Partnership Firm

Introduction of LLP in India:

The Comparision:-

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